IPO-bound Milky Mist Dairy Food is scaling up a contract dairy farming model to improve milk yield, quality and long-term procurement as India’s milk production growth slows while demand continues to accelerate. The ₹3,200-crore Erode-based value-added dairy company has established 500 contract dairy farms across Tamil Nadu over the past 18 months, each housing 15–25 cows, and now plans to develop larger farms with 50–100 cows or buffaloes.
India’s milk production growth has slowed from 6–7% annually until 2022 to around 3.5%–3.78%, while milk demand continues to rise by 6–7% annually, creating a widening supply-demand gap. To address this, Milky Mist is helping farmers secure bank financing for cattle purchases while promoting green fodder cultivation, silage and Total Mixed Ration (TMR) feeding to improve milk yield, quality and farm profitability. Farmers supplying higher-quality milk receive an additional ₹0.50 per litre incentive.
The company currently procures 14 lakh litres of milk per day and manufactures 60–80 tonnes of paneer and 20 tonnes of mozzarella cheese daily, while continuing to source milk from both contract farms and smallholder farmers. The initiative reflects a growing shift toward organised, technology-driven dairy farming aimed at ensuring a stable supply of high-quality milk for India’s expanding value-added dairy market. (fortuneindia.com)
Source: Dairynews7x7 27 July, 2026 Read full story here
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